Debate contribution: Areas with Natural Constraints (Payments) Bill: Second Stage

Debate contribution by Mr Andrew Muir on 23 March 2026.

MLA

Mr Andrew Muir

Party at the time

Alliance Party

Date

23 March 2026

Type

Debate contribution (made as a minister)

Business

Private Members' Business

Heading

Areas with Natural Constraints (Payments) Bill: Second Stage

Assembly identifier

Official Report component 5465807

Read the official Assembly record

Text

I welcome the opportunity to speak to the private Member's Bill. The classification "areas with natural constraints" means land that is designated as being in a severely disadvantaged area, or SDA, in Northern Ireland and was established in the 1970s. Almost half of Northern Ireland's agricultural land — around 448,000 hectares — is in SDAs, which support upwards of 10,000 predominantly beef and sheep farms. Such areas, which are centred in the Mournes, the glens of Antrim, the Sperrins and most of County Fermanagh, are an integral part of our rural landscape. Farmers in SDAs make a vital contribution. They safeguard biodiversity, protect our natural environment and produce high-quality livestock that underpin the wider supply chain. As the agricultural census of 2025 makes clear, such areas account for 45% of suckler cows, 16% of dairy cows and 58% of breeding ewes. The sustainable agriculture programme provides targeted support that is designed to meet Northern Ireland's specific needs, delivering environmental benefits while supporting the agri-food sector. The programme has been co-designed with agriculture and environmental stakeholders, including hill farmers' representatives, through the agricultural policy stakeholder group, thus ensuring a robust and inclusive development process. As part of the sustainable agriculture programme, or SAP, the farm sustainability payment, or FSP, was introduced this year, replacing the farm sustainability transition payment, or FSTP, which delivered £247 million in 2025, including approximately £100 million to farms in SDAs. The FSP is now the core support mechanism for all farm businesses, providing resilience against external shocks whilst encouraging improved environmental management and efficiency. Farmers in SDAs also have access to additional support through the beef sustainability package, including the suckler cow scheme and the Farming with Nature package, which provide income support alongside environmental improvements, emissions reductions and productivity gains. With around 45% of Northern Ireland's suckler cows located in SDAs, the suckler cow scheme alone has the potential to deliver over £6 million in support for those areas. Although I recognise that there is currently no stand-alone support for the sheep sector, my officials have commenced work on developing evidence-based proposals under the sustainable agriculture programme for support for the sheep sector. A stakeholder working group, which includes industry and non-governmental organisation representatives, has identified key areas of need, which are now being taken forward for future development. I plan to announce more on the development of support for the sheep sector later in the year. The Farming with Nature package will provide targeted support for farmland in designated areas, for priority habitats and for species. The proposed support will help farmers manage such areas effectively while delivering strong environmental outcomes. Activities may include maintaining vegetation through well-planned grazing regimes and suitable stocking densities, and reducing the risk of wildfire by limiting the accumulation of combustible materials. The House will recall that an ANC scheme operated here in 2016 and 2017 under the EU rural development programme, supported by £20 million a year. It proceeded only under ministerial direction, because it did not meet the standards of 'Managing Public Money'. A review of the ANC scheme and subsequent consultation on future support to ANCs was carried out in 2016, with affordability being a central question. In 2018, the same exceptional approach was required, and there was a further ministerial direction, with reduced funding of £8 million. Crucially, despite the scheme ending, SDA farmers have not seen their support being diminished. The transition to flat-rate entitlements under pillar 1 shifted significant direct payment funding from dairy, lowland cattle and sheep and mixed farms into the SDA. Since 2018, incomes for SDA cattle and sheep farms have remained stable, and the distribution of livestock across regions has not materially changed. The £19 million annual shift, which was created through the flat-rate transition, remains a recurring and substantial benefit to SDA farmers. The Bill would create a legal requirement on my Department to establish a new ANC scheme, regardless of affordability or competing priorities. If that were to be funded from the earmarked budget for agriculture, agrienvironment and rural affairs, it would force a further reduction in FSP entitlement values for all farmers, including those in SDAs. That would be on top of the £19 million that was already transferred to those areas through the move towards flat-rate entitlement values. The Bill calls for funding to be based on, at least, that of the ANC scheme in 2018. A new scheme based on 2018 rates and the 2025 retail price index would cost approximately £11·4 million each year. With inflation-linked increases being mandated, funding would grow year-on-year, unlike any other agriculture support schemes. The previous ANC scheme operated under the Northern Ireland rural development programme, as I outlined, and the common agricultural policy, and it was not funded from pillar 1. Under the sustainable agriculture programme, however, support comes from the Executive's earmarked agriculture and agrienvironment budget. Under the Bill as drafted, funding provision for the new ANC scheme would also come from that budget. It would therefore require FSP funds to be redirected, thereby reducing overall farm sustainability payments. There is no provision in the Finance Minister's draft Budget for new money for a new ANC scheme. On the contrary, we are due to overspend in this financial year, and we have an obligation in the years ahead to pay back the reserve claim that was required to deal with the pressures. Reference was made to this financial year. In this financial year, the focus of all Departments is on minimising the scale of that overspend. My Department seeks to do that. Based on all the analysis that I have set out, my sincere advice is that there is no compelling value-for-money case for reinstating an ANC scheme. I understand that UFU support for the Bill is conditional on sourcing new moneys to fund it, but I am not sure how that can be assured.

Yes.

If I had an additional £15 million? There are a range of pressures in my Department. I want to support the agriculture community, and we are seeking to do many things, particularly around sheep support. There are pressures across the Department in relation to the environment, water quality and air quality. The current draft Budget is dire for my Department. We will struggle to deliver statutory services. If we were to add pressures, more issues around the Department fulfilling its statutory functions would be likely to emerge. I need to be honest with people about that. Those are the pressures that we are sitting with. A draft Budget is out for consultation, but it does not take into account the overspend in this financial year, and it is not clear how that will be addressed. The Treasury is also doing an open-book exercise in each Department to understand the scale of the financial issues in the Executive. At the AERA Committee session on 16 March 2026, the Bill sponsor stated that the funding for an ANC scheme should not be drawn from the Executive's earmarked budget for agriculture, agrienvironment, fisheries and rural development. I am not sure how the Bill's sponsor can make that statement. Does he, perhaps, intend to table amendments at Consideration Stage to legislate for that commitment? I would be grateful for clarity on that in his response to the debate. As Minister, and I say this sincerely, it is important that we all take a responsible position on this private Member's Bill given the severe public expenditure challenges that we face, including the forecast overspend in this financial year. It would be irresponsible to pass at Second Stage a private Member's Bill that creates a potential new funding pressure of £11 million a year whilst, at the same time, the Assembly is passing another piece of legislation to defer hospital car parking charges due to the cost implications of £7 million a year. With regard to drafting, I should inform Members that the Bill —.

Yes.

Thank you, Nuala, for your intervention. If the Bill passes Second Stage and completes its passage through the House, it will likely be for the Minister in the next mandate to take forward its implementation. The easiest thing for me to do as Minister would be to say that that will be for someone else to deal with. However, I am concerned about people's confidence and trust in these institutions, and we have to be conscious of future liabilities, the issues that I have set out and the fact that passing the Bill and getting Royal Assent is not resolving the issues. We cannot defer the financial liabilities that arise from the Bill, and we need to be debating and voting on this legislation in that context.

1,447 words. Text as published by the Northern Ireland Assembly.

Assessment

Not flagged

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Assessed 21 October 2026 at 15:08 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

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